Is it time to opt out of Agristability?

[rbgordon]

Looks like the AG funding for programs like Agristability will be drastically reduced. From what I read and hear coverage will likely be reduced from 85% to 70&. Will be deciding in the new year, but at this time am leaning towards opting out, high accounting fees and a greatly reduced likelyhood of a payout makes staying in the program not very attractive. I can think of a lot of better ways to spend my time than compiling records and all the paperwork required for these programs. Most of these programs are top heavy on the administrative side, and have turned out to be make work projects for accountants. What do other readers think?

[countryguy]

I'm out for the exact same reasons as you. Just what they were hoping for.

[vvalk]

It's actually way worse then just going from 85%
to 70%. First your margin may be decimated by
the new rules. Your new margin will be the lower
of the Olympic avg of either your eligible
expenses or your old margin. On my farm that
margin is 60% less right off the start. If you have
decent crop insurance then chances of being in
the negative margin is pretty low. So in the
positive margin the old system was 80% of 85%
or about 79% paid on your margin. The new rules
is 70% of 70% or 49% so actually even if your
margin stays the same you will be getting 30%
less. I am in alberta and our crop insurance is
pretty decent and can take price insurance. There
is very little chance maybe impossible to ever
trigger an ag stab payment. Especially with the
eligible expenses being your new margin. BTW
rent, custom work, interest, repairs and maint and
paying yourself or family members and i believe
depreciation do not count as eligible expenses

[vvalk]

Will have to look into this but it may actually be 2x
eligible expenses as your new margin which
would be 25% cut to the margin then add 30% cut
to the positive margin payment

[wd9]

You mean the government wants us to be
financially responsible with our decisions
and not overextend when times get tough?
Bastards!

[VK58]

To me lt looks like the Agri-Invest part is the only portion of the program worth staying in for. Will have to do the math.

[bucket]

Not that long ago the markets were thinking the world was short wheat. Remember russia and the ukraine were talking export bans, argentina has started talking about reduced yields, the UK is under water and importing wheat for the first time in a long time and now poof the world is actually awash in wheat.

Not to mention the substituting wheat for corn because the corn production was way down this year.

Go figure, I guess I missed the memo where it all came from.

The report was pretty much the same as last month. Maybe someone is just taking a break, making a list and checking it twice.

[freewheat]

WD 9. LOL!!!!

[wilagro]

Forget Agri-UNstability...go with LOTTO 649...better odds of a pay-out.

[burnt]

Why does this discussion remind me of a bunch of socialists trying to act like capitalists?

[Burbert]

Heil Harper!

[sumdumguy]

in defense of th treasury, after a few years of
high prices and good yields, reference margins
increased as well as farm size. This increased
risk to the crown ( and you and me) was
addressed.

[wilagro]

If the freakin' Crown didn't or doesn't want to PAY out then WHY did they start the farcical program to begin with? It always was a SHELL GAME with the odds fully in favour of the Crown most of the time. The truth is...it was a terribly flawed program from the start...cobbled together by snivel-servants, accountants, shady politicians and lawyers.

[15444]

Agree with VK58. Agri-Invest is the only reasonable facet of these programs that still exists.

[Hopperbin]

I would like the gov't to come up with a program that if you opt out of crop ins and agstability, they offer to pay you half the money that they spend per acre and could put it into aginvest account. Would work for me and save the gov't some money as well. We should not be forced into a gov't run insurance program that is costly to maintain. This I think would still provide insurance but at a cheaper cost to gov't and taxpayers. No more complaints of accountants and beaurocrats taking all the money. For those that cannot manage a direct payment and put it away they can use the gov't insurance.